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Paytm Payments Bank - All You need to Know

Paytm Payments Bank - All You Need to Know

Effective for All Upcoming Competitive Exams

(Specially WBSEDCL Office Executive & SSC CGL)

Introduction:

Paytm launched “Paytm Payments Bank” in India on 23rd May, 2017, announcing the new unit via a public notice in newspapers and a blog post. The Paytm Payments Bank is the first to offer zero charges on online transactions, no minimum balance requirement and free virtual debit card. Renu Satti has been appointed the CEO of the new entity, and also sits on the payments bank's board; Paytm CEO Vijay Shekhar Sharma is the non-executive chairman. It has finalized a five-member board as it gears up to expand its physical presence to 31 branches and 3,000 customer service points

in the first year. With the Paytm Payments Bank finally operational, there are a few changes consumers would be introduced to, primarily the wallets business being transferred to the newly-incorporated entity Paytm Payments Bank Ltd (PPBL). Popular digital payments player Paytm, which shot to fame after the demonetisation experiment, is now branching out into the fast-growing payments bank segment. The primary branch of Paytm Payments bank opens in the National Capital region of Delhi in Noida.

Key Features:

One can request for an invite by logging onto www.paytmpaymentsbank.com or through the Paytm app.

Paytm Payments Bank accounts will initially be available on an invite-only basis.

PPBL can take Rs.1lakh per account, as per RBI guidelines for payment banks.

A payments bank cannot lend or give advance to customers. It can issue cheque books and debit cards but not credit cards.

Paytm currently has around 220 million customers who use its digital wallet. Wallets Money will be transferred to the payments banks.

This bank will get Rs.400crore in investment in the first 2 years of operation.

Customers will have to comply with 'know your customer' (KYC) norms for opening accounts.

Non-Executive Chairman Vijay Shekhar Sharma (One97 Communications founder) possess a 51% stake in the payments bank (as per regulatory requirements) with the remaining stake owned by One97 Communications. He and One97 have together invested about Rs.220crore in the payments bank so far.

PPBL will offer zero balance accounts and all online transactions via channels like RTGS, IMPS and NEFT will be free.

The first 1 million customers to open an account with the Bank and reach a deposit of Rs.25, 000 will get a cashback of Rs.250 instantly.

Immediately Paytm will grant physical card and virtual Rupay debit cards to customers on request for withdrawing cash from any ATM in the country.

In case, if you are an existing user your money will be shifted to the PPB Limited as the wallet business will become part of the new company. It will happen automatically, and you need not do anything.

The company has a target of achieve 500 million customers by 2020.

Paytm intention to open 31 branches and 3,000 customer service points in a year.

The initial accounts will be invitation only. The bank will roll out its beta banking application for employees and associates soon.

Movement to PPBL is necessary by RBI for all Paytm Wallet customers.

However, if a user select not to continue they can write an email to care@paytmpaymentsbank.com.

Users who do not migrate to Bank will end up closing their wallets and unable to make payments using Paytm Wallet.